Freshworks to Deepen its IT Service and Operations Portfolio with Acquisition of FireHydrant Freshworks has signed a definitive agreement to acquire FireHydrant, a provider of AI-powered Incident Management software. The combination will bring together Freshservice’s IT Service Management (ITSM) and FireHydrant’s core IT Operations Management (ITOM) as a unified AI-native ServiceOps solution designed to simplify operations, proactively prevent disruptions, and ensure exceptional IT service reliability. ...

Core Insights - Freshworks Inc. has introduced new capabilities in its Freshservice platform aimed at simplifying enterprise service delivery, modernizing IT, and enhancing employee trust [1][4] Group 1: Product Enhancements - The launch includes enhancements to Freshservice and Freddy AI, improving employee experience (EX) and service delivery through effortless self-service and real-time device health insights [2] - AI-powered Intelligent Routing in Freshservice ensures tickets are directed to the appropriate team instantly, enhancing resolution speed and employee experience [2] - Freddy AI Insights now provides IT leaders with conversational insights to visualize complex service patterns and quickly identify root causes [2][7] Group 2: Addressing Complexity in IT - Freshworks' Cost of Complexity Report indicates that nearly 20% of IT leaders have faced burnout or attrition due to complex software, with 29% of employees reporting productivity loss from bloated tools [3] - The report identifies business software as the primary driver of organizational complexity [3] Group 3: Proactive Issue Resolution - DEX integrations with Riverbed Aternity and ControlUp allow for the detection and resolution of endpoint issues before employees notice them, providing immediate visibility into system health [5] - AI-powered Intelligent Routing helps assign tickets based on team availability, skill, and workload, improving issue resolution efficiency [5] Group 4: Enhanced Employee Support - Enhanced Freddy AI Agents can now search Google Drive and process images within tickets, integrating seamlessly with popular applications like Microsoft 365 Copilot [6] - Freshservice's multilingual knowledge base allows users to access helpful articles in their preferred language, improving self-service capabilities [6] Group 5: Performance Recognition - Freshservice has been recognized as a Strong Performer in The Forrester Wave™: Enterprise Service Management Platforms, Q4 2025, receiving high scores in various criteria [8] - Customers have praised Freshworks for its ease of use, intuitive design, and robust API capabilities, contributing to improved incident management and resolution times [8]

Core Insights - Freshworks reported a 15% year-over-year revenue growth for Q3 2025, reaching $215.1 million compared to $186.6 million in Q3 2024 [1] - The company narrowed its net loss to $4.6 million from $30 million in the previous year, while GAAP loss from operations improved to $7.5 million from $38.9 million [1] Financial Performance - Freshworks raised its full-year revenue guidance to $833.1-$836.1 million, up from the previous estimate of $822.9-$828.9 million, driven by enterprise adoption of AI [2] - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $813.2 million [2] Customer Metrics - The number of customers contributing more than $5,000 in annual recurring revenue (ARR) increased by 9% year-over-year to 24,377 [4] - The net dollar retention rate was 105%, slightly down from 107% in Q3 2024 [4] - Freddy AI products saw a doubling in annual recurring revenue year-over-year [4] Product and Market Expansion - Freshworks onboarded new customers including AllSaints/John Varvatos, Apollo Tyres, and Société Générale [5] - The company expanded its Enterprise Service Management (ESM) offerings, with ESM annual recurring revenue surpassing $35 million in Q3 2025 [5] Market Performance - Freshworks shares have declined approximately 32% since the beginning of the year, while the S&P 500 has gained 15% [6] - Following the earnings report, Freshworks shares rose by about 1.2%, closing at $11.06 on the Nasdaq [6]

Q3 2025 Earnings Presentation November 5, 2025 © 2025 Freshworks Inc. All rights reserved. Disclaimer This presentation has been prepared by Freshworks Inc. ("Freshworks") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise, or representation by Freshworks or any officer, director, employee, agent, or advisor of Freshworks. This presentation does not purport to be all inclusive or to contain all of the ...

Core Insights - Freshworks has appointed Enrique Ortegon as the new Senior Vice President and General Manager of Americas Field Sales to enhance growth and customer expansion across North and South America [1][2] - Ortegon brings over two decades of experience in enterprise SaaS and go-to-market strategy, having previously held senior roles at DocuSign and Salesforce [2][3] - Freshworks aims to deliver exceptional customer and employee experiences through its uncomplicated service software, which is trusted by over 74,000 companies [4] Company Strategy - The company focuses on a growth strategy that emphasizes operational excellence and strategic vision to accelerate regional growth [2] - Freshworks' value proposition is centered around simplicity and superior return on investment, distinguishing it from competitors in the employee and customer experience markets [3] Leadership Background - Enrique Ortegon has a strong track record in scaling businesses from SMB to enterprise levels and has significant operating experience across the Americas [2] - His previous roles include leading North America Majors, Mid-Market, and SMB businesses at DocuSign, and various senior leadership positions at Salesforce [2] Community Engagement - Beyond corporate roles, Ortegon advises startups and an investment fund focused on empowering Latin entrepreneurs and supporting underrepresented communities [3]

Core Viewpoint - Freshworks Inc. is considered one of the best low-priced technology stocks to buy, with a focus on long-term financial targets and an updated outlook from UBS analyst Taylor McGinnis, who reiterated a Buy rating and a $19 price target [1][3]. Financial Targets - The company aims to exceed $1.2 billion in revenue by FY 2028, indicating an annual growth rate of 15%-16%, and targets free cash flow of over $340 million, with a margin of 28%-30% [2]. Analyst Insights - McGinnis noted that while there are execution risks due to challenges from seat-based SaaS models and rising AI adoption, the valuation of Freshworks remains attractive, particularly for CY 2026, with an EV/Sales ratio of approximately 3x and an EV/FCF ratio of 13x [3][5]. - Despite not adjusting the FY 2025 forecast, UBS has lowered the free cash flow margin forecast to 30% from 32% and set revenue growth at the lower end of management's range [4]. Company Overview - Freshworks Inc. operates as a SaaS provider, offering customer engagement and IT service management solutions through products like Freshdesk, Freshservice, and Freshsales [6].

Freshworks Investor Day 2025 Summary Company Overview - **Company**: Freshworks (NasdaqGS:FRSH) - **Event**: Investor Day 2025 - **Date**: September 11, 2025 - **Focus**: Uncomplicated AI-native service platform for customer and employee experiences Core Industry Insights - **Industry**: Software as a Service (SaaS) focusing on IT and customer service - **Market Size**: Total addressable market for EX (Employee Experience) and CX (Customer Experience) software is estimated at **$80 billion** [22] - **Target Market**: Mid-market and lower-end enterprise customers, which account for over **$10 trillion** in economic activity in the U.S. alone [22] Key Company Highlights - **Growth Metrics**: - Recurring revenue increased from approximately **$560 million** to **$840 million** in two years [10] - Achieved Rule of 45 milestone ahead of schedule [10] - AI monetization grew to **$20 million**, doubling in the last year [10] - 25% revenue growth from customers spending over **$100,000** [12] - Majority of revenue now from mid-market and enterprise customers [11] - **Product Portfolio**: - **Freshservice**: AI-powered platform for IT and employee services - **Freshdesk**: AI-powered customer service solution - **Freddy AI**: Includes Freddy AI Copilot, Freddy Insights, and Freddy AI Agents for enhanced customer and employee support [9] Strategic Focus Areas - **AI Integration**: Continuous infusion of AI across core products to enhance value and solve more problems [57] - **Vertical Expansion**: Focus on sectors like education, healthcare, and government [57] - **Add-on Products**: Scaling IT asset management and enterprise service management (ESM) products [58] - **Adjacency Expansion**: Exploring areas like AI Ops and SecOps for future growth [59] Customer Base and Testimonials - **Diverse Customer Base**: Over **74,000** companies including Fortune 500 firms like Panasonic and various government entities [6][7] - **Customer Success Stories**: - **Big Bus Tours**: Transformed customer service center into a profit center using Freddy AI [63] - **Modamax**: Unified IT operations and improved onboarding processes through Freshservice [51][52] Financial Outlook - **Future Projections**: On track to achieve over **$1.3 billion** in recurring revenue by 2028 with strong cash flow and operating margins [21] - **Sustained Growth**: EX business expected to sustain **20% growth** for years [21] Conclusion - Freshworks is positioned to capitalize on the growing demand for uncomplicated, AI-driven solutions in the SaaS market, with a clear strategy for growth and a strong commitment to customer success. The company aims to continue its upward trajectory by leveraging its innovative product offerings and expanding into new market segments.

Financial Performance & Growth - Freshworks' ARR exceeded $840 million[24], with a 2-year CAGR of 20%[24] - The company achieved 18% YoY revenue growth and a 27% adjusted FCF margin in Q2 2025[24] - Freshworks is on track for $1.3 billion+ ARR by 2028[34] - The company projects revenue between $822.9 million and $828.9 million for 2025, representing 14%-15% YoY growth[232] - Non-GAAP income from operations is projected between $153 million and $157 million for 2025[232] Customer Base & AI - Freshworks has 74,000+ paying customers across 120+ countries[21] - Mid-market and Enterprise customers account for >60% of total ARR[24] - Freddy AI is now a >$20 million ARR business[24, 96] Employee Experience (EX) - EX remains a durable 20%+ growth engine[34] - EX customers with >$100K ARR increased by 32% YoY[58] - Databricks achieved 23% ticket deflection via self-service using Freshworks[61]

Freshworks (FRSH) FY Conference Summary Company Overview - Freshworks is a software company founded in 2010, primarily known for its Freshdesk product line, which has evolved to include AI-powered software for employee-facing (EX) and customer-facing (CX) products [3][4] - The company serves over 74,000 customers, focusing on IT and customer support teams to enhance efficiency and effectiveness [4] Financial Performance - The EX business has surpassed $450 million in revenue, growing over 22% year-over-year in constant currency, with approximately 19,000 customers [5] - The CX business has an annual recurring revenue (ARR) of over $380 million, growing 8% in the last quarter, up from 7% previously, with around 60,000 customers [6] Strategic Focus - The company is prioritizing the EX segment for growth, leveraging its competitive advantages against established players like ServiceNow [12][29] - AI integration across all products is a key strategy, with $20 million in ARR attributed to AI capabilities [13][36] - Freshworks aims to enhance its CX business by improving execution and focusing on the SMB and mid-market segments [14] Competitive Positioning - Freshworks differentiates itself by providing user-friendly, easy-to-implement software at competitive prices, targeting both SMBs and larger enterprises [15][16] - The company sees a significant opportunity in the underserved upmarket, primarily dominated by ServiceNow, which offers complex and expensive solutions [50][51] Sales and Marketing Strategy - Freshworks has two distinct sales motions: one for CX, primarily managed from India, and another for EX, focusing on enterprise sales [28][29] - The company is investing in building its enterprise sales capabilities and optimizing its marketing strategies to drive demand across both segments [30][31] AI Integration and Impact - AI is viewed as an accelerant for Freshworks, enhancing product utility and customer experience while potentially reducing the need for additional hiring among customers [36][46] - The company is focused on integrating AI features that improve agent productivity and customer engagement [41][43] Customer Base and Market Opportunities - Freshworks is expanding its customer base, targeting organizations of various sizes, from small businesses to large enterprises [58] - The company is also exploring adjacent markets, such as employee service management (ESM), to capture additional growth opportunities [60] M&A Strategy - Freshworks is open to pursuing mergers and acquisitions to enhance its product offerings, particularly in areas like security operations and IT operations [62][66] - The acquisition of Device 42 is highlighted as a successful example of entering a new market segment [64] Upcoming Events - Freshworks will hold an Investor Day on September 11, 2025, to provide updates on product strategy, financial goals, and market positioning [70][74] Conclusion - Freshworks is strategically positioned for growth in the EX market, leveraging AI and a strong customer base while addressing the competitive landscape effectively. The focus on execution, product innovation, and market expansion will be critical for its continued success.

Core Viewpoint - Freshworks reported strong Q2 2025 financial results, exceeding revenue and earnings expectations, driven by operational improvements and AI product adoption [1][5][14] Financial Performance - GAAP revenue reached $204.7 million, surpassing estimates of $198.8 million, marking a 17.6% year-over-year increase from $174.1 million [2][5] - Non-GAAP earnings per share were $0.18, significantly above the expected $0.11 and up 125% from $0.08 in Q2 2024 [2][5] - Non-GAAP income from operations was $44.8 million, a 241.2% increase from $13.1 million in the same quarter last year [2][6] - Adjusted free cash flow increased by 65.5% year-over-year to $54.3 million, with operating cash flow climbing to $58.6 million, up 61.4% [2][6] Profitability Metrics - Gross margin improved to 84.8%, up from 83.8% a year ago, while non-GAAP operating margin reached 21.9%, up from 7.5% [7][6] - Free cash flow margin improved to 26.5%, reflecting effective cost control relative to revenue [6] Customer Growth - The number of customers generating over $5,000 in annual recurring revenue increased by 10% year-over-year to 23,975, indicating strong long-term revenue retention potential [8] - Net dollar retention remained steady at 106%, reflecting stable customer spending [8] AI Developments - The Freddy AI suite surpassed $20 million in annual recurring revenue, showcasing the success of AI-driven solutions [9] - Freshworks launched the Freddy AI Agent Studio, a no-code tool for businesses to create AI-powered automation agents [9] Market Positioning - Freshworks secured a multi-year partnership with McLaren Racing, enhancing its visibility in enterprise sales and competing against larger SaaS vendors [10][11] - The company continues to focus on integrating AI features across its software offerings, utilizing a product-led growth strategy [4] Future Guidance - Management raised revenue guidance for Q3 2025 to between $207.0 million and $210.0 million, projecting 11-12% year-over-year growth [14] - Full-year revenue is expected to be in the range of $822.9 million to $828.9 million, indicating 14-15% growth [14] - Non-GAAP operating income is anticipated to rise to $153.0–$157.0 million, with earnings per share forecasted at $0.56–$0.58 [14] Competitive Landscape - The company faces competitive dynamics as larger software firms introduce their own AI features, which may impact customer adoption rates of Freshworks' AI modules [16]